Cadbury Nigeria Ltd, the maker of Bornvita, recorded a 65% increase in pre-tax loss in the first nine months of 2024 from N10.24 billion in the same period in 2023 to N16.93 billion in the current period. did.
According to the company’s September 2024 financial statement, revenue increased by 51% to NGN 89.52 billion from NGN 59.2 billion in the same period in 2023.
Financial costs increased significantly during the period, resulting in a decline in profitability for the period.
Key Highlights of the Report Revenue – 89.51 billion naira, +52% Cost of goods sold – 74.76 billion naira, +74% Gross profit – 14.76 billion naira, -9.44% Selling and distribution expenses – 5.18 billion naira, – 0.13%Result from operating activities – 6.24 billion naira, -35% Net financial expenses – 23.18 billion naira, +17% Loss before tax – 16.93 billion naira, +65% Loss after tax – 11.85 billion Million Naira, +16% Basic Earnings Per Share (EPS) – (-N520)
For the quarter ending September 2024, the company’s revenue reached N38.08 billion, up from N23.59 billion.
However, cost of goods sold for the third quarter of 2024 was N32.91, accounting for 86% of the company’s revenue. This figure is almost double the cost of sales of 17.5 billion Naira in Q3 2023.
During the current period, the company’s gross profit decreased and operating profit also decreased compared to Q3 2023. Gross profit from July to September 2023 went from N6.07 billion to N5.17 billion. Finance costs for the third quarter of 2024 decreased from net income of N719 million to expenses of N4.5 billion. As a result, the pre-tax profit for the same period in 2023 was N4.29 billion, while the pre-tax loss was N3.05 billion.
Commentary – Despite the significant increase in revenue, the issues that affected the company in 2023 have not alleviated. Cadbury Nigeria Ltd. reported a pre-tax loss of N28.2 billion for the 2023 financial year, which was a significant decrease of 2269% from the pre-tax profit of N1.3 billion recorded in 2022.
On January 28, 2024, the company’s board of directors announced that it had negotiated a debt forgiveness of $20 million from CSOL for the $40 million received on January 15, 2024. The board explained that the debt forgiveness was necessary due to the rapid devaluation of the Nigerian Naira. Against the US dollar, it fell from 911.68 Naira in December 2023 to more than 1,400 Naira in January 2024. During the period, the company recorded revenue of N53.35 billion from the soft drinks segment and N25.71 billion from the confectionery segment. The company’s revenue from cocoa intermediate products increased by more than 200% in the third quarter from N3.2 billion to N10.45 billion. Follow us for breaking news and market intelligence.
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